XRP holds steady as ETF inflows return and Ripple deepens footprint in Brazil
- XRP holds modest weekly gains above $1.52 despite the Middle East war-driven volatility across global markets.
- Ripple announced the expansion of its payment offerings in Brazil and is preparing to apply for a Virtual Asset Service Provider license.
- XRP experiences mild inflows into ETFs following eight consecutive days of muted activity.
Ripple (XRP) hovers above $1.52 at the time of writing on Wednesday, as cryptocurrency prices steady despite the ongoing war in the Middle East. The remittance token is showing an improving technical outlook, holding onto weekly gains from the opening of $1.45.
Despite the steady price increase, higher support remains key to sustaining XRP’s recovery, with the short-term target around $1.70 and the medium-term target at roughly $1.95.
Ripple expands payments offerings in Brazil
Ripple announced on Tuesday that it is deepening its footprint in Brazil to accelerate institutional adoption. The endeavour will ride on new product capabilities spanning cross-border payments, digital asset custody services, prime brokerage, and treasury management.
The blockchain company added that it plans to apply for a Virtual Asset Service Provider (VASP) license under the country’s new regulatory framework, issued by the Central Bank of Brazil (BCB).
The Ripple Payments service has processed over $100 billion in global cross-border transfer volume spanning over 60 markets. Ripple stated that the platform “is the end-to-end solution for moving money across borders – giving institutions a faster, more transparent way to send, receive, and settle funds in both fiat and stablecoins.”
Institutional interest returns as retail demand cools
XRP spot Exchange-Traded Funds (ETFs) saw a resurgence of inflows on Tuesday, following eight days of muted activity. According to SoSoValue data, inflows totalled $4.6 million, marking a significant improvement from the nearly $6 million of outflows recorded on Monday.
Cumulative inflows have increased slightly to $1.21 billion while net assets under management total $1.08 billion. Nevertheless, steady inflows are required to reinforce positive market sentiment. Therefore, traders need to temper their expectations until a trend is established.
Meanwhile, the derivatives market appears to be cooling, with futures Open Interest (OI) sliding to $2.79 billion on Wednesday, from $2.87 billion on Tuesday. The OI had steadily increased from lows of $2.11 billion on March 4, suggesting a growing interest from retail investors as the XRP price ticked up from the $1.34 monthly low.
Technical outlook: XRP holds key support
XRP is trading above $1.52 amid a mild bullish bias, reinforced by the Moving Average Convergence Divergence (MACD) indicator, which remains above its signal line and in positive territory on the daily chart. Slightly expanding green histogram bars suggest building upside momentum after the recent push from the $1.45 area.
It is worth noting that the dominant descending resistance trendline that capped every recovery attempt from the record high of $3.66 remains intact and continues to define the overarching bearish structure despite the latest bounce.
Still, initial resistance lies at $1.61, aligning with Tuesday's high, followed by the 100-day Exponential Moving Average (EMA) at $1.70 and the 200-day EMA at $1.95.
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On the downside, immediate support is seen around the pivotal level at $1.50, the latest consolidation shelf, followed by the weekly open at $1.45. The Money Flow Index (MFI) reading is around 70, easing slightly near overbought levels, signaling a potential pullback. A daily close below $1.45 would negate the nascent bullish bias and expose a deeper correction toward Friday's low at $1.38.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
(The technical analysis of this story was written with the help of an AI tool.)
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